Construction Materials · NYSE
Current Price
$204.56
Intrinsic Value
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Run a full DCF analysis on Eagle Materials Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials and light building materials in the United States. It operates through Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard segments. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures. It also manufactures and sells recycled paperboard to gypsum wallboard industry and other paperboard converters, as well as containerboard and lightweight packaging grades. In addition, the company engages in the sale of ready-mix concrete; and mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel. Its products are used in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.
ROIC (TTM)
12.3%
ROE (TTM)
28.8%
FCF Yield
3.61%
Based on trailing twelve-month data, EXP shows a free cash flow per share of N/A and a ROIC of 12.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.61% are important context metrics when evaluating EXP's stock valuation relative to peers.
The intrinsic value of EXP depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether EXP is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $204.56. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Eagle Materials Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Construction Materials industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting EXP's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Eagle Materials Inc., this means projecting how much free cash flow the Construction Materials will produce over the next 5-10 years, then discounting those amounts to today's dollars. EXP's ROIC of 12.3% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For EXP, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
